If the demand for milk is relatively inelastic, the discovery will lower both price and total revenues.
Option - b
<u>Explanation:
</u>
Reducing prices to gain sales is a famous advertising tool. This type of situation arises mostly with every day products and services. If the quantity is increased, the demand will be inelastic this will lower both price and total revenue. Total revenue is reduced as price is reduced when demand is inelastic. When demand is inelastic, instead of reducing total revenue it could be hiked by raising price instead of reducing price.
Inelastic demand: In Economics, inelastic demand is even when the price of the product increases or decreases, the purchase rate of the product will be the same.
Answer:
The correct statements under the step-down method are:
a. I, II, and III.
Explanation:
The step-down method of allocating the costs of service departments is one of the three methods in use. The others include the direct method and the reciprocal method. With the direct method, service departments' costs are directly allocated to the production departments without any allocation to a service department. The reciprocal method is much more involved, using formulas and calculations. The step-down method allocates the service departments' costs to all the other service and production departments, except itself. This step is eventually followed until all the service departments' costs have been allocated to the production departments.
Answer:
The cheapest alternative is: $300 a month immediately.
Explanation:
Giving the following information:
The dorm cost was $5000 for the two semesters
Jay had already paid a month after he moved into the dorm.
Jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment.
His share of the apartment rent and utilities will be $390 per month.
Each semester is 4.5 months long.
Alternative A:
One student offered to move in immediately and to pay Jay $300 per month for the eight remaining months of the school year.
Income= 300*8= 2400
Apartment rent= (3120)
Food= (3600)
Total= (4320)
Alternative B:
A second student offered to move in the second semester and pay $2500 to Jay.
Income= 2500
Dorm rent= (5000/9)*3.5= (1944)
Apartment rent= (1755)
Dorm food= 500*3.5= (1750)
Apartment food= (2025)
Total= (4974)
Alternative C:
Stay in the dorms
Dorm rent= (4444.44)
Dorm Food= (4000)
Total= $8444.44
<u>The cheapest alternative is A.</u>
<span>The demand for gold toe socks is likely to be more elastic than the demand for power tools because, generally speaking, power tools would be a bit more expensive than gold toe socks would be, and they also may have more substitutes than power tools would have.</span>
Answer: a. The firm must purchase lumpy assets to achieve the increase in sales.
Explanation:
EvenFlo Pipes needs to sell more pipes in order to see an increase in sales. Assuming they are the producers, they will need to produce more pipes than they have been doing and this will need them to increase their production capacity.
To do so they would have to invest in fixed assets as these are what produce pipes. This is why the firm will have to purchase lumpy assets that will help them produce and sell more pipes.
